Stock ETF

Filed Under:
Dictionary Says

Definition of 'Stock ETF'


A security that tracks a particular set of equities, similar to an index. A stock ETF is traded just as a normal share of stock is traded on an exchange, but unlike a mutual fund it will have its price adjusted throughout the day rather than at market close. This type of ETF is usually made up of stocks in a similar industry, such as energy, but can cover an index of equities as well.

Investopedia Says

Investopedia explains 'Stock ETF'


A stock ETF allows an investor to gain exposure to a basket of equities without having to purchase individual shares. A stock ETF can be treated like a normal stock in that it can be shorted or purchased on margin. Like most ETFs, a stock ETF often carries a management fee or other type of expense, but this is typically lower than those found in a mutual fund.

Related Video for 'Stock ETF'

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center